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79R15239 QS-F
By: Shapleigh S.B. No. 1810
Substitute the following for S.B. No. 1810:
By: Puente C.S.S.B. No. 1810
A BILL TO BE ENTITLED
AN ACT
relating to the dissolution of the Homestead Municipal Utility
District, the provision of water supply services to the residents
of the district's service area after dissolution, and the rates
charged for water service by the City of El Paso.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. DEFINITIONS. In this Act:
(1) "City" means the City of El Paso.
(2) "District" means the Homestead Municipal Utility
District.
(3) "District board" means the board of directors of
the Homestead Municipal Utility District.
(4) "Executive director" means the executive director
of the Texas Commission on Environmental Quality.
SECTION 2. TRANSFER OF ASSETS AND LIABILITIES; REQUEST FOR
DISSOLUTION ORDER. (a) The district board may transfer to the City
of El Paso the district's assets and liabilities in accordance with
the district's written request for El Paso Water Utilities to take
over the management of its water supply system.
(b) On favorable action of the El Paso Water Utilities
Public Service Board, the district board shall notify the executive
director and request an order of dissolution.
(c) The district board shall provide the executive director
with any information or documentation the executive director
requests to monitor the district's progress toward the complete
transfer of its assets and liabilities to the city.
SECTION 3. ORDER OF DISSOLUTION; TRANSFER OF ASSETS AND
LIABILITIES. (a) On receipt of the notice and request from the
city, the executive director shall investigate to verify whether
the parties have met all the necessary conditions for the transfer.
(b) After investigation, the executive director shall issue
an order of dissolution if the executive director determines:
(1) the district is ready to be dissolved;
(2) all of the district's assets and liabilities are
ready to be transferred to the city for incorporation into the
city's water system;
(3) the city and the El Paso Water Utilities Public
Service Board are prepared to accept the transfer; and
(4) the city council has adopted a resolution
accepting the transfer.
(c) In issuing an order of dissolution under Subsection (b)
of this section, the executive director shall:
(1) direct the district board to provide the city, the
El Paso Water Utilities Public Service Board, and the secretary of
state all transfer documents, including all deeds, easements, and
bills of sale in the possession of the board, and any other
information necessary or appropriate to transfer all district
assets and liabilities to the city;
(2) order the district dissolved; and
(3) order that all assets and liabilities of the
district be transferred to the city for incorporation into the
city's water system.
(d) The consideration and adoption of an order of
dissolution under this section is not a contested case under
Chapter 2001, Government Code.
(e) The order of dissolution issued under this section is
wholly sufficient and effective to accomplish the dissolution of
the district and the transfer of its assets and liabilities to the
city.
(f) The executive director shall file with the secretary of
state and in the deed records of El Paso County a certified copy of
the order of dissolution issued under this section together with a
certified copy of the resolution of the city council accepting the
transfer.
SECTION 4. COLLECTION OF MONEY OWED THE DISTRICT. On or
after the date the dissolution order is issued under Section 3 of
this Act, the city, through the El Paso Water Utilities Public
Service Board, may collect all money owed the district on the date
the order is issued including:
(1) taxes, fees, or charges imposed by the district
that were due and owing on the date of the dissolution order issued
under Section 3 of this Act; and
(2) the district's accounts receivable.
SECTION 5. RATES FOR SERVICE. (a) The city, through the El
Paso Water Utilities Public Service Board, may charge residents of
El Paso County living in the service area formerly served by the
district water supply rates that exceed the rates paid by water
supply customers who are residents of the city if the higher rates
are necessary or appropriate to fully cover the cost of service to
the area, as determined by the El Paso Water Utilities Public
Service Board.
(b) The water supply rates the city, through the El Paso
Water Utilities Public Service Board, charges residents of El Paso
County living in the service area formerly served by the district
may include:
(1) an amount necessary to recover:
(A) the costs of operation and maintenance of the
water supply or improvements serving the area; and
(B) debt service, including the cost of loans
accepted to improve the water supply system serving the area; and
(2) a monthly water supply fee, if the district does
not have surface water rights or potable water wells.
(c) Section 16.349, Water Code, does not affect the amount
of the fee charged under this section.
SECTION 6. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2005.